Arbeitspapier
Revenue- versus spending-based consolidation plans: The role of follow-up
The literature on fiscal multipliers finds that spending-based fiscal consolidations tend to have more benign macro-economic consequences than revenue-based consolidations. By directly comparing ex-post data with consolidation plans, we present evidence of a systematically weaker follow-up of spending-based consolidation plans. Next, using a newly-developed dataset of consolidation announcements, panel VAR regressions confirm the weaker follow-up of spending-based plans and their more benign macro-economic effects compared to those of revenue-based plans. We disentangle the role of the difference in follow-up from that of the difference in the composition of revenue- and spending-based consolidations. While the latter channel, which works through the difference between revenue and spending multipliers, explains the largest fraction of the difference in economic trajectories, the difference in follow-up plays a non-negligible role as well.
- ISBN
-
978-92-899-3283-7
- Sprache
-
Englisch
- Erschienen in
-
Series: ECB Working Paper ; No. 2178
- Klassifikation
-
Wirtschaft
Macroeconomics: Consumption; Saving; Wealth
Fiscal Policy
- Thema
-
fiscal consolidation announcements
follow-up
fiscal multipliers
panel vector auto-regression
narrative identification
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Beetsma, Roel
Furtuna, Oana
Giuliodori, Massimo
- Ereignis
-
Veröffentlichung
- (wer)
-
European Central Bank (ECB)
- (wo)
-
Frankfurt a. M.
- (wann)
-
2018
- DOI
-
doi:10.2866/11013
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Beetsma, Roel
- Furtuna, Oana
- Giuliodori, Massimo
- European Central Bank (ECB)
Entstanden
- 2018
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